How we invest

Our investment process is analyst led. They are the heart of the organisation, they do over 200 research trips a year and the output of their bottom-up work is what drives the investment process. That said, when constructing portfolios there are three variables I look at to supplement their bottom-up work.

The first is governance. We have a four-decade history of looking at EM governance, but also partnering with our in-house responsible investing team on ESG parameters.

Second would be liquidity, and in working with our traders to measure every transaction on a post transaction cost basis, we want to be sure we're paid for the relative illiquidity of EM debt.

Third and final would be the macro factors. We know in some countries the macro will outweigh the micro, and we need to size our risk accordingly for that conviction.

So it's the combination of that bottom-up analyst-driven process and a consistent portfolio construction process that leads to the end output.

IMPORTANT INFORMATION

This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.

It is not intended for distribution to retail investors in any jurisdiction.

Samy Muaddi is a portfolio manager in the International Fixed Income Division. He is the lead manager and executive vice president of the Emerging Markets Corporate Bond Strategy and chairman of the strategy's Investment Advisory Committee. He also manages the Asia Credit Bond Strategy and is co-portfolio manager of the Global High Income Bond Strategy and cochairman of the strategy’s Investment Advisory Committee. Samy is a vice president and an Investment Advisory Committee member of the Corporate Income, Global Multi-Sector Bond, and New Income Funds and a vice president of the Institutional Income Funds, Inc. Samy also is a vice president of T. Rowe Price Associates, Inc., and T. Rowe Price Group, Inc.

Strategy

The Emerging Markets Corporate Bond Full-Authority Composite is comprised of portfolios seeking current income and capital appreciation primarily through investment in a broader universe of fixed income corporate debt securities and quasi-sovereign debt securities issued by companies located or having a business activity in emerging/developing countries. While largely focused on dollar-denominated corporate bonds, the composite has the ability to invest in local currency corporates as well as dollar-denominated sovereigns. The Full-Authority composite maintains broader discretion seeking to invest in the entire emerging markets corporate universe

GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request.

Other Literature

You have successfully subscribed.

Notify me by email when

regular data and commentary is availableexceptional commentary is available

new articles become available

Thank you for your continued interest

Registration incomplete.

Please reference the email we sent you and click the link to confirm. If you don't see an email, please check your spam folder or request another email.